Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Soars 4% As U.S. Ambassador To Turkey Says U.S. Could Strike Iran

Natural Gas Tests New Lows

Natural gas remained under strong pressure as traders focused on milder weather forecasts and bet on lower demand.

Natural gas declined below the support at $2.70 – $2.73 and is trying to settle below the $2.65 level. In case this attempt is successful, natural gas will head towards the next support, which is located in the $2.50 – $2.53 range. RSI is close to the oversold territory, but there is enough room to gain additional downside momentum in the near term.

On the upside, natural gas needs to settle above the $2.73 level to have a chance to gain upside momentum in the near term. In this case, natural gas will head towards the resistance at $2.85 – $2.88.

WTI Oil Soars As Traders Bet U.S. Would Strike Iran

WTI oil rallied as traders bet that U.S. could strike Iran over the weekend. U.S. Ambassador to Turkey Tom Barrack has recently said that there could be a strike against Iran this weekend.

When asked about Barrack’s words, President Trump said: “I don’t know anything about it”. Put simply, Trump did not say that Barrack’s comment was incorrect.

UAE was forced to close some beaches after the country detected an oil spill from a tanker which was attacked in the Persian Gulf. Iran has increased attacks on tankers in recent weeks. In this light, the U.S. may choose to restart the military operation against Iran to protect vessels going through the Strait of Hormuz.

Iran has previously warned that the country’s response to a potential attack would not be limited to defense. Iranian officials have speculated that the country could initate a land operation against any country helping the U.S. I’d note that the U.S. has already ordered some diplomats and their families to leave Saudi Arabia, a sign of escalating tensions in the region.

WTI oil climbed above the resistance at $100.50 – $101.00 and is trying to settle above the $103.00 level. In case this attempt is successful, WTI oil will head towards the next resistance, which is located in the $106.00 – $106.50 range. A move above the $106.50 level will push WTI oil towards the $110.00 level.

Brent Oil Tests The $117.00 Level

Brent oil soared as traders prepared for the war in the Middle East. Physical flows of oil could be disrupted again in case the war begins, providing additional support to oil prices. I’d note that global oil reserves have been significantly cut since February, so additional disruptions could have a major impact on markets.

From the technical point of view, Brent oil climbed above the resistance at $114.50 – $115.00 and is trying to move above the $117.00 level. In case Brent oil settles above $117.00, it will head towards the nearest resistance level, which is located in the $119.50 – $120.00 range. RSI has recently moved into overbought territory, but technical factors will take a back seat in case the war begins this weekend.

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